The Global Investment Performance Standards (GIPS®) are voluntary ethical standards for calculating and presenting investment performance based on the principles of fair representation and full disclosure.
One of the main reasons why firms choose to comply with the GIPS standards is to gain a competitive marketing advantage. Given that more than 1,700 entities currently claim compliance with the GIPS standards, claiming compliance has become a necessity to attract institutional assets.
Most consultant RFPs will include an initial screening question on GIPS compliance and firms that cannot “check the box” may not advance in the process. Many consultant databases indicate whether a firm is GIPS compliant. Database users then have the option to filter asset managers by this indicator.
GIPS compliance can also demonstrate a firm’s commitment to self-regulation and best practices that complement legal and regulatory requirements. This commitment helps increase investor confidence in the performance being presented.
Current clients looking to invest additional assets and prospective clients will have added assurance that the performance information was generated using consistent policies and procedures and is comparable to presentations from other firms.
At Fairview Performance Services, our experienced staff can help you attain and maintain compliance with the GIPS standards. Contact us today for more information about what we can do to assist your firm.